Asahi Acquires Diageo's Stake in East African Breweries

The Kenya competition authority has approved Japan's Asahi Group Holdings' acquisition of Diageo's assets in Kenya, following Diageo's decision to exit the African market. The deal includes a requirement to reserve a portion of refrigeration space for products not branded with EABL or Asahi.

In a significant development, Kenya's competition authority has granted approval to Japan's Asahi Group Holdings Limited for acquiring sole control of Diageo's Kenyan assets. This strategic move marks Diageo's exit from the African market, facilitating a $2.3 billion deal for Asahi.

Initially announced in December 2025, the transaction involves selling Diageo's 65% stake in East African Breweries Limited to Asahi. The agreement mandates that at least 20% of refrigeration space at retail outlets be allocated to products not branded by EABL or Asahi.

The process faced hurdles, including a legal challenge by distributor Bia Tosha, which was dismissed. The competition authority emphasizes the need for EABL to allocate funds to address liabilities and ensure no disruption to supply continuity or small business growth.